Galaxy Securities Said to Start Gauging Demand for Initial Offer
China Galaxy Securities Co., a brokerage controlled by the country’s sovereign wealth fund, started gauging demand today for a $1.5 billion initial share sale in Hong Kong, two people with knowledge of the matter said.
The company, based in Beijing, aims to start trading early next month, said the people, asking not to be identified because the information is private. Founded in January 2007, Galaxy Securities is controlled by Central Huijin Investment Ltd., a unit of China Investment Corp., according to the brokerage’s website.
Goldman Sachs Group Inc. and JPMorgan Chase & Co. are among banks managing the sale, along with the brokerage’s own Hong Kong unit, the people said.
Haitong Securities Co., which raised HK$14.4 billion ($1.9 billion) in a Hong Kong share sale in April last year, has gained 1.7 percent from its offer price. The Shanghai-based brokerage trades at 1.3 times estimated 2013 book value, according to data compiled by Bloomberg.
An external spokeswoman for Galaxy Securities declined to comment on the IPO plan.
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